Czech apartment prices in regional cities rise by 9% in 2024

The cost of apartments in the Czech Republic increased significantly in 2024, with prices in regional cities rising by 9% and overall apartment prices increasing by 7.8%. On average, a square meter in a Czech apartment cost CZK 73,000. When factoring in new development projects, the average price per square meter rose by an additional CZK 9,000.

Apartments in regional cities were nearly twice as expensive as those in smaller municipalities. According to an analysis by real estate portal Valuo.cz, some new developments even surpassed CZK 180,000 per square meter in 2023. The report, based on data from the cadastral office, shows that over the past three years, apartment sales have been nearly evenly split between regional cities and smaller municipalities. Development projects accounted for 13% of apartment sales in regional cities and 9% in smaller municipalities.

Price Differences Between Regional and Non-Regional Cities

In regional cities, the average apartment price reached CZK 95,000 per square meter, and when including development projects, this figure rose to CZK 106,000. In contrast, outside of regional cities, the average price per square meter was CZK 49,000, increasing to CZK 53,000 when development projects were included.

"With an average apartment size of 60 to 62 square meters, apartments outside regional cities sold for CZK 3.7 million in 2024. Excluding development projects, the price dropped to CZK 3.1 million. In regional cities, the average price was CZK 7.7 million, or CZK 6 million without development projects," stated Iztok Toplak, an analyst at Valuo.cz.

Market Trends by Apartment Type

Brick apartments accounted for 54% of sales in regional cities and 46% outside them. Prefabricated apartments held a greater market share outside regional cities, making up 54% of total transactions. In regional cities, brick apartments were priced at around CZK 107,000 per square meter, while outside these cities, the price was CZK 52,000. Meanwhile, prefabricated apartments in regional cities maintained a price of approximately CZK 77,000 per square meter, but in smaller municipalities, their price fell to CZK 45,000 per square meter. According to Toplak, this decrease suggests that demand for older prefabricated apartments outside regional cities has weakened.

The analysis also highlighted that smaller apartments (up to 54 square meters) are in higher demand in regional cities due to their more affordable absolute price. Meanwhile, larger apartments (over 92 square meters) are also popular in regional cities, where the limited availability of family houses makes them an attractive alternative for buyers seeking more spacious housing.

Regional Disparities in Sales

Most apartment sales take place outside regional cities, with two exceptions: the South Moravian and Pilsen Regions, where more than half of all housing transactions occur in the regional city. Prague represents a unique case, as it does not have an extra-urban municipality, while the Central Bohemian Region lacks a main regional city.

This analysis underscores the continued growth of apartment prices in the Czech Republic, driven by regional disparities and market demand for both smaller and larger housing options.

Source: CTK